Delays Issuance of Converted Tax Credits under Business Employment Incentive Program

A-4002 (Schaer)The law delays the priority schedule for converting BEIP grants to refundable tax credits under P.L.2015, c.194. Grants accrued, but not paid, in 2008 through 2013, can be converted to tax credits that now will be phased in over five years and issued as a percentage of the original amount: 5 percent in the 2017 tax year; 20 percent in the 2018 tax year; 25 percent in the 2019 tax year; 25 percent in the 2020 tax year; and 25 percent in the 2021 tax year. Grants accrued, but not paid, in 2014 and 2015 can be converted to tax credits issued in four equal installments over four years beginning in the 2019 tax year. Grants accrued, but not paid, in 2016 and 2017, can be converted to tax credits issued in three equal installments over three years, beginning in the 2020 tax year.

Signed by Governor on June 30, 2016 (P.L.2016, c.9)Effective Date: June 30, 2016